Issue link: https://maltatoday.uberflip.com/i/698019
maltatoday, WEDNESDAY, 29 JUNE 2016 11 With billions of devices expected to be connected in the coming years, media and entertainment companies are well-positioned to seize an early advantage as an enabler and receiver of IoT applications, according to the EY report Internet of Things: Human-machine interactions that un- lock possibilities. The total potential for IoT in the M&E space is expansive: to create, deliver and tailor content for new platforms and to measure the context of media consumption using analytics. The increasing sophistication of IoT sensors makes it possible for devices to read, gauge and understand consumers at unprecedented levels. The M&E industry is already using categories of sensors such as inertial, motion and image sensors used in animation, gaming, video images, camera stabilization, sports and 3D. This is opening up new, intimate entertainment experiences for consumers. "Armed with meaningful insights about consumer behaviors and preferences, M&E companies will be able to use data to deliver highly personalized, contextually relevant entertainment experiences to help people reimagine their experiences on devices they already own," Chris Gianutsos, Executive Director, Media & Entertainment Advisory Services, Ernst & Young LLP said. "To fully exploit the potential of IoT, there's also an opportunity to expand to platforms that may not be considered part of the entertainment ecosystem or even exist today … think about having news and information delivered on household appliances or video streaming in self-driving cars. We expect this will dramatically redefine consumer expectations in the near future." One of the most anticipated benefits of IoT for marketers is its potential – through the use of sensors – to unlock data on a person's habits, preferences and most significantly, the context in which media is being consumed. If smart devices provide useful data to content providers that is perceived as non-intrusive and the resulting content experience correctly interprets consumers' current readings (mood, need, intention) in real-time, and then quickly respond to those needs with relevant and targeted advertising, the implications for improved brand loyalty could be vast. For M&E companies to realize the full potential of IoT, they need to also consider the associated risks, including regulatory hurdles, legal precedents, intellectual property rights, lack of connectivity standards and lack of IoT scale to reach critical mass, the report finds. The biggest challenges are around privacy and cybersecurity. Protecting personal information is an issue that will become exponentially more difficult as IoT collects enormous amounts of data and connects more devices, software, machines and humans. Gianutsos says, "IoT is both disruptive and inevitable. For M&E companies to be successful, they will have to address risk and quickly innovate to respond to evolving customer needs and deliver rich content experiences. Only then will the M&E industry find real value in its IoT investments." Access the report here: ey.com/ G L / e n / I n d u s t r i e s / M e d i a - - - Entertainment/ey-internet-of-things Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way DBRS confi rms United Kingdom at AAA following Brexit vote DBRS Ratings has confi rmed the long-term foreign and local curren- cy issuer ratings of the United King- dom of Great Britain and Northern Ireland (the UK) at AAA, and the short-term foreign and local curren- cy issuer ratings at R-1 (high). The trend on all ratings remains Stable. The majority of British voters voted to leave the European Union in a referendum held on 23 June. The referendum on EU membership resulted in a win for the 'Leave' campaign with 52% of the votes against 48% obtained by the 'Remain' campaign. The outcome has intensified financial market volatility and weakened Sterling, and is likely to lower capital inflows and deepen the economic slowdown. The outcome has also shown a stark difference in support for EU membership across the countries of the UK, with Scotland and Northern Ireland voting to remain in the EU, and England and Wales voting to leave. But DBRS said it does not expect the UK government's debt repayment capacity to decline in the period directly after the vote. The Stable trend reflects DBRS's assessment that the challenges the UK faces, including those related to higher uncertainty over the vote to leave the EU, are manageable in the immediate future given the UK's favourable debt dynamics, strong institutional framework and large, wealthy economy. The ratings are supported by the country's large and advanced economy, with labour market and exchange rate flexibility supporting its resilience. The UK's institutional strength also supports the ratings, as the country ranks highly in governance indicators and benefits from a credible central bank, a sound fiscal framework, and enhanced financial supervision. The ratings are further supported by the very favourable maturity structure of public debt, with the longest average maturity among advanced economies, significantly easing short-term refinancing requirements. The UK's deep domestic capital market and Sterling's status as a global reserve currency provide the sovereign with substantial funding flexibility. However the UK faces important credit challenges. Firstly, the UK vote to leave the EU is likely to generate years of uncertainty over the UK's trade arrangements, the attractiveness of the UK as a financial centre and destination for investment, the mobility of foreign workers in the UK, and the UK's own political unity. The Prime Minister's announcement of his resignation has also added to the uncertainty. Over time, these factors could result in weaker growth, higher interest rates, and a deterioration in public finances. Thus, whether the UK's repayment capacity will decline in the longer term is less clear. Moreover, despite important progress in fiscal deficit reduction, public debt remains high, limiting the government's fiscal flexibility to respond to the expected economic downturn. Also of concern is the current account deficit which is large, at 7.0% of GDP in Q4 2015, and a source of external vulnerability. Rating drivers The ratings could be subject to downward pressure if rollover risk rises significantly, or if economic and financial dislocations impair economic prospects or result in a deterioration in the banking sector or the fiscal position. There is potential for a severe negative impact from a UK departure from the EU on British investment, trade and the political environment. If prolonged economic and policy uncertainty and changes to the economy stemming from the UK's new trade arrangements result in an important loss in output, this could erode the government's capacity to pay its debt and put downward pressure on the ratings. A break-up of the UK, emerging from a potential second referendum on Scottish independence, could also put downward pressure on the ratings, since this would likely create uncertainty. As specified in EU Regulation 462/2009, amending Regulation 1060/2009 on credit rating agencies, DBRS's ratings on the UK are subject to publication restrictions, as set out in Article 8a of the Regulation, including publication in accordance with a pre-established calendar. Under Article 8a, a deviation of the publication of sovereign ratings from the calendar must be accompanied by a detailed explanation of the reasons for the deviation. The next pre-established calendar date for publication of our UK ratings is 8 July 2016. This review deviates from the calendar because of the economic and political significance of the UK's referendum on EU membership and its potential implications for our ratings on the UK. Internet of Things will offer increased opportunities for media and entertainment